Compute and interpret Ratios Selected balance sheet and income statement information from Illinois Tool Works follows. Smillions 2019 2018 2017 Net operating profit after tax (NOPAT) $2,897 $3,009 Net income 2.798 2.845 Total assets 15,671 15,465 $17.451 Equity 3.147 3,384 3,384 Net operating profit after tax (NOA) 9,224 9,840 10,493 Treasury stock 21,070 19,475 17,274 a. Compute profitability measures: RNOA, ROA and ROE for 2019 and 2018 using the numbers as reported by the company. Note: Round answers to one decimal place (ex: 0.2345 - 23,5%). Metric 2019 2018 RNOA 096 0.96 ROA 0.96 096 ROE 096 0.96 b. Adjust equity and total assets for the amount of treasury stock S millions 2019 2018 2017 Assets, restated S 0$ 0$ 0 Equity, restated OS 05 0 Using these restated numbers, recompute RNOA ROA and ROE for both years. Note: Round answers to one decimal place (ex: 0.2345 - 23.5%), Metric 2019 2018 RIVOAN 0 0.96 ROA 0.90 09 ROE 096 016 a. Compute profitability measures: RNOA, ROA and ROE for 2019 and 2018 using the numbers as reported by the company. Note: Round answers to one decimal place (ex: 0.2345 = 23.596). Metric RNOA ROA ROE 2019 OM 09 09 2018 0 % 0.9 0 b. Adjust equity and total assets for the amount of treasury stock S millions 2019 2018 2017 Assets restated OS OS 0 Equity, restated OS 05 0 Using these restated numbers, recompute RNOA ROA and ROE for both years. Note: Round answers to one decimal place (ex: 0.2345 23.59), Metric 2010 2018 RNOA 09 0% ROA OM 0% ROL 04 0 Which profitability measures (from part a or part b) better reflect the company's profit levels during the two years? of the three measures which one is least influenced by the company's stock repurchase activity Compute and interpret Ratios Selected balance sheet and income statement information from Illinois Tool Works follows. Smillions 2019 2018 2017 Net operating profit after tax (NOPAT) $2,897 $3,009 Net income 2.798 2.845 Total assets 15,671 15,465 $17.451 Equity 3.147 3,384 3,384 Net operating profit after tax (NOA) 9,224 9,840 10,493 Treasury stock 21,070 19,475 17,274 a. Compute profitability measures: RNOA, ROA and ROE for 2019 and 2018 using the numbers as reported by the company. Note: Round answers to one decimal place (ex: 0.2345 - 23,5%). Metric 2019 2018 RNOA 096 0.96 ROA 0.96 096 ROE 096 0.96 b. Adjust equity and total assets for the amount of treasury stock S millions 2019 2018 2017 Assets, restated S 0$ 0$ 0 Equity, restated OS 05 0 Using these restated numbers, recompute RNOA ROA and ROE for both years. Note: Round answers to one decimal place (ex: 0.2345 - 23.5%), Metric 2019 2018 RIVOAN 0 0.96 ROA 0.90 09 ROE 096 016 a. Compute profitability measures: RNOA, ROA and ROE for 2019 and 2018 using the numbers as reported by the company. Note: Round answers to one decimal place (ex: 0.2345 = 23.596). Metric RNOA ROA ROE 2019 OM 09 09 2018 0 % 0.9 0 b. Adjust equity and total assets for the amount of treasury stock S millions 2019 2018 2017 Assets restated OS OS 0 Equity, restated OS 05 0 Using these restated numbers, recompute RNOA ROA and ROE for both years. Note: Round answers to one decimal place (ex: 0.2345 23.59), Metric 2010 2018 RNOA 09 0% ROA OM 0% ROL 04 0 Which profitability measures (from part a or part b) better reflect the company's profit levels during the two years? of the three measures which one is least influenced by the company's stock repurchase activity
